POSTED BY January 2, 2014 10:52 am COMMENTS (7)ON
I wish to know whether there is any benefit in selecting an EMI date early in the month as compared to late in the month. Does the loan get repaid earlier i.e. is the interest paid less in any particular scenario. I did a math on my home loan taking the minimum interest possible and the maximum interest possible.
I did it for 1 year and found out that there was a difference of about 2650 rs when I took the starting principal of about Rs 24lacs, ROI at 8% and EMI of Rs 32000, paying early in the month being beneficial. Is this calculation correct? Will the gap widen over a long term of 20-30 years? Is it worth changing the EMI date to an earlier date?